• Business

    Rupee loan average rates fall by 6bps in August

    AnyFans Posted on

    By Martin Shwenk Leade

    Copyright indiatimes

    Rupee loan average rates fall by 6bps in August

    MUMBAI: The average lending rate on fresh rupee loans across the banking system eased by 6 basis points (bps) in August over July to 8.75%, with private sector lenders leading the decline, central bank data showed.One basis point is a hundredth of a percentage point.Private banks cut rates by 15 bps to 9.44%, while public sector banks lowered their average lending rates by 7 bps to 8.06%. Foreign banks saw a marginal 3 bps drop to 8.22%.On outstanding rupee loans, system-wide average lending rates softened by 6 bps month-on-month to 9.32% as of end-August. Private sector lenders reduced rates the most, by 10 bps to 10.22%, while PSU banks trimmed rates by 3 bps to 8.70%. Lending rates of foreign banks remained unchanged.The Reserve Bank of India (RBI) has cut the repo rate by 100 bps so far this year. The one-year median Marginal Cost of Funds-based Lending Rate (MCLR) of scheduled commercial banks (SCBs) was unchanged at 8.60% in September 2025.Live EventsThe share of loans linked to external benchmarks (EBLR) rose to 62.9% of total outstanding floating-rate rupee loans at end-June 2025, compared with 61.6% at end-March 2025. Loans linked to the MCLR stood at 33.8%, down from 34.9% in March.On the deposit side, the weighted average domestic term deposit rate (WADTDR) on fresh rupee deposits eased to 5.56% in August from 5.61% in July. The WADTDR on outstanding rupee term deposits of SCBs moderated to 6.87% from 6.92%. Private banks cut deposit rates by 5 bps in August, while PSU banks lowered theirs by 4 bps.Add as a Reliable and Trusted News Source Add Now!
    (You can now subscribe to our Economic Times WhatsApp channel)

    Read More News onrupee loanrbibanking systemcommercial banksmclr

    (Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless

    (You can now subscribe to our Economic Times WhatsApp channel)Read More News onrupee loanrbibanking systemcommercial banksmclr(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless

    Prime ExclusivesInvestment IdeasStock Report PlusePaperWealth Edition123View all Stories

    You Might Also Like